ON Semiconductor CorporationON announced a strategic collaboration with ConvenientPower Systems to develop in-vehicle wireless charging solutions. Under the agreement, ConvenientPower will develop, design and market in-vehicle wireless charging solutions, making use of ON Semi's NCV6500 power management controller.
This collaboration in automotive wireless charging solution is expected to enhance ON Semi's product portfolio and strengthen its foothold in the automotive market. Per Technavio, the global wireless charger market is expected to witness CAGR of more than 33% in the period 2016-2020, which will greatly benefit ON Semi.
Automotive Driving Growth for ON Semi
Notably, shares of ON Semi have gained 69.6% in the last year, outperforming the industry's rally of 27%.
The company has been increasing investments in the automotive market, which has been a major contributor to its growth. Automotive revenues jumped 32% year over year to $411 million in the last quarter, representing almost 30% of total revenues.
Moreover, this Zacks Rank #3 (Hold) stock has been growing aggressively in the Advanced Driver Assistance Systems (ADAS) and wireless charging solutions business. The company recently collaborated with Baidu BIDU to develop Apollo Autonomous Driving Platform. Its collaboration with Baidu has not only confirmed ON Semi's prominent position in the image sensor market but also helped the company to expand its footprint in China.
Stocks to Consider
A couple of better-ranked stocks in the broader technology sector are Broadcom Limited AVGO and NVIDIA Corporation NVDA . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Broadcom and NVIDIA have a long-term expected EPS growth rate of 13.75% and 10.25% respectively.
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